- Entity value of €61 million leads to substantial reduction in debt
- schlott gruppe extends competitive position within printing market
- Operational performance of print segment unsatisfactory
- Earnings target for FY 2006/7 will be met with help from book gain on disposal of meiller direct
Freudenstadt, May 10, 2007. schlott gruppe AG will sell its direct marketing division to Österreichische Post AG. The supervisory boards of both companies discussed the transaction at their respective meetings and granted their consent. Österreichische Post AG will acquire meiller direct GmbH, including all its subsidiaries, effective from March 31, 2007, for a sum of €60.5 million less net financial liabilities. The transaction is subject to the approval by the relevant cartel and antitrust authorities.
schlott gruppe succeeded in disposing of the direct marketing division within a very short period of time. In doing so, it has managed to realise hidden reserves, scale back bank borrowings by a considerable margin and unlock management capacities. The resources are to be used for the purpose of gaining additional momentum in the European printing market and thus further extending schlott gruppe's leading position.In line with recent trends, the company's continuing operations within the print segment remain subject to intense competition, as Germany's economic upturn has yet to embrace the printing industry. Against the backdrop of current overcapacity in the printing sector, customers have in some cases been able to secure significant discounts in recent months, particularly for projects which had previously been implemented during peak periods. As a result, financial performance within the print segment has been unsatisfactory in the financial year to date.
The effects of price-related pressure are to be counteracted in future business years with the help of extensive cost reduction measures, further optimisation at production level and strategic competitive advantages held by schlott gruppe. The book gain on the disposal of the direct marketing division will contribute towards the Group achieving a consolidated EBT of around €23 million for the current 2006/7 financial year.
Further information will be disclosed by the company when it presents its first-half report on May 14, 2007.
